What Employment Policies Should Every Foreign Company Have in Korea?

Short Answer

Foreign companies operating in Korea should have employment policies that are localized for Korean labor law, not simply translated from global HR templates.

At a minimum, companies should review whether they need:

• Work Rules
• Code of Conduct
• Disciplinary Policy
• Workplace Harassment and Sexual Harassment Policy
• Confidentiality Policy
• IT and Personal Information Protection Policy
• Internal Investigation Policy
• Whistleblowing Policy
• Exit and Company Property Return Policy

Some policies are legally required, while others are not mandatory but are highly recommended to reduce employment disputes and compliance risks.

---

Are Work Rules Required in Korea?

Yes, for many employers.

Employers with 10 or more employees are generally required to prepare and file Work Rules under Korean labor law.

Work Rules typically cover important employment matters such as working hours, wages, leave, discipline, dismissal, retirement, and workplace order.

If Work Rules are changed, different procedural requirements may apply, particularly where the change is disadvantageous to employees.

Foreign companies should not assume that a global employee handbook automatically satisfies Korean Work Rules requirements.

---

What Policies Should Foreign Companies Prioritize?

In addition to Work Rules, foreign companies should generally consider adopting:

• a Code of Conduct covering ethics, conflicts of interest, and compliance;
• a Disciplinary Policy explaining misconduct and disciplinary procedures;
• Workplace Harassment and Sexual Harassment Policies with clear reporting and investigation procedures;
• Confidentiality and IT Policies addressing company information, company devices, and acceptable use;
• a Personal Information Protection Policy governing employee data and cross-border data handling;
• Internal Investigation and Whistleblowing Policies for compliance investigations and employee reports; and
• an Exit and Company Property Return Policy for departing employees.

These policies should be consistent with employment contracts and Work Rules.

---

Common Mistakes by Foreign Companies

Foreign companies often:

• rely only on a global employee handbook;
• fail to prepare Korean Work Rules where required;
• use policies that conflict with Korean labor law;
• fail to update policies after legal changes;
• overlook Korean privacy requirements when sharing HR data with overseas headquarters; or
• have policies that exist on paper but are not followed in practice.

---

Practical Checklist for Foreign Companies

Before operating in Korea, consider:

• Do we need Korean Work Rules?
• Are our global HR policies localized?
• Are employment contracts and policies consistent?
• Do we have clear disciplinary and investigation procedures?
• Are harassment reporting procedures in place?
• Are confidentiality, IT, and privacy policies up to date?
• Do we have whistleblowing and exit procedures?
• Have employees received and acknowledged these policies?

---

Practical Takeaway

Employment policies are more than internal guidelines.

In Korea, they often become important evidence in labor disputes, workplace investigations, harassment complaints, and disciplinary proceedings.

Foreign companies should ensure that their policies comply with Korean law and are consistently implemented in practice.

---

Conclusion

A well-designed employment policy framework can significantly reduce legal and compliance risks in Korea.

Rather than relying solely on global HR templates, foreign companies should adopt policies that reflect Korean employment law and implement them consistently throughout the organization.

---